XBRL Filing - ROC Annual Filing for Large Companies
“Extensible Business Reporting Language” (XBRL), means a standardized language for communication in the electronic form to express, report, or file financial information by the companies under the Act.
It was developed specifically to communicate information between businesses and other users of financial information, such as analysts, investors, and regulators. XBRL provides a common, electronic format for business reporting. It does not change what is being reported.
XBRL enables producers and consumers of financial data to switch resources away from costly manual processes, typically involving time-consuming comparison, assembly, and re-entry of data. They are able to concentrate effort on analysis, aided by software that can validate and manipulate XBRL information.
A end to end hand holding for your annual requirements is what we have in this plan. TAXAJ will assist you in matters like drafting, appointing, filling and much more.
It Usually takes 5 to 7 working days.
- Secretarial services of preparing board resolution, post AGM
- Yearly filing of MGT-7, AOC-4 for Pvt Ltd Company
- Disclosure of Interest by director (Form MBP-1)
- Assistance in appointment of Auditor, if required
- Companies want to comply to the Annual Compliance as mandated my ROC/MCA
- Purchase the plan
- Share the documents/details as requested by us.
- We shall prepare the documents as required & get signed by you.
- Prepare the form as applicable & file it.
Balance Sheet with its Notes
Profit and Loss Statement with its Notes
Cash Flow Statement.
Statement of Change in Equity.
Reports from the Board of directors with annexures thereto
Reports from the Independent Auditor with annexures thereto
Corporate Social Responsibility Report, if Any
Statement of Subsidiaries in Form AOC-1, if Any
Significant Accounting Policies
Other Relevant Documents, if Any Required
What is XBRL Filing?
As humans, we use languages to communicate to different people, where each word has been assigned a meaning. Similarly, there was a requirement of language to communicate business data in a clear and uniform manner.
So, XBRL is an XML standard for tagging business and financial reports to increase the transparency and accessibility of business information by using a uniform format. It is a language for electronic communication of business and financial data which has completely reshaped the way of business reporting.
Since it provides a common electronic format for business reporting, XBRL makes the data readable, easy to understand, and most importantly- uniform. It doesn’t matter if you are a preparer, transmitter, or user of business data, XBRL is going to benefit everyone from top to bottom.
Applicability of XBRL Filing
The applicability shall be categorized as per the Indian Accounting Standards (IND AS), which are a set of accounting standards notified by the Ministry of Corporate Affairs which are converged with International Financial Reporting Standards. So, now India has two sets of accounting standards viz. existing accounting standards under Companies (Accounting Standard rules, 2006) and IFRS converged Indian Accounting Standard.
Companies following IND AS:
Companies listed with stock exchanges in India;
Companies having net worth of rupees 250 crore or more;
Holding, subsidiary, joint venture or associate companies of above companies.
Companies following Non- IND AS:
Companies having paid up capital of five crore rupees or above;
Companies having turnover of one hundred crore rupees or above.
Exempted Companies
Following Companies shall be exempted from the applicability of Section 137 of the Company’s Act, 2013:
Non-banking financial companies
Housing finance companies
Companies engaged in the business of Banking and Insurance
Other Clarifications
Even if the company does not satisfy the criteria mentioned under section 137 of the Company Act-
All the companies which are covered under the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011(which were required to file AOC-4 XBRL for the financial year commencing on or after 1st April 2014 using XBRL Taxonomy)
OR
All companies which are required to prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015 are required to file financial statements and other documents as per XBRL taxonomy only, irrespective of whether it satisfies the criteria in later years.
What if a company voluntarily files financial statements as per XBRL for any year? Do they need to file it in the same manner in future financial years also?
It is hereby clarified that all the companies falling under XBRL Amendment rules 2017 require to mandatorily filing statements as per XBRL. However, it is not mandatory for other companies to file statements as per XBRL format in later years.
What if a company fulfills the applicability criteria of filing statements as per XBRL, but due to some reasons in later years it doesn’t fall under the applicability criteria anymore? Do such companies still need to file the statement as per XBRL rules:
Only companies falling under the applicability criteria need to file statements as per the XBRL rules.
How does XBRL work?
How does XBRL work?
XBRL makes the data readable, with the help of two documents
- Taxonomy and
- Instance document
Taxonomy defines the elements and their relationships based on the regulatory requirements. Using the taxonomy prescribed by the regulators, companies need to map their reports, and generate a valid XBRL instance document. The process of mapping means matching the concepts as reported by the company to the corresponding element in the taxonomy. In addition to assigning XBRL tag from taxonomy, information like unit of measurement, period of data, scale of reporting etc. needs to be included in the instance document.
Benefits of XBRL
XBRL offers many benefits in the field of business reporting and analysis:
- Improved way of reporting
- Automated data collection
- Reliable and accurate
- Cost effective
- Time saving process
- Analytical process
- Safe in data handling
- Helps in better decision making
The use of XBRL is quite varied and wide. XBRL enables producers and consumers of financial data to switch resources away from costly manual processes, typically involving time-consuming comparison, assembly and re-entry of data.
ROC Filing of XBRL Report
Filing of financial statements with ROC is of utmost importance. It is the basis on which the financial performance of the company is judged. It helps to know the company better and also is very important so as to protect the public interest. Hence, form AOC-4 XBRL is for filing the company’s financial statement for every financial year with the Registrar of Company.
Steps for XBRL Filing:
Due Dates to File form AOC-4 XBRL
Due Dates to File form AOC-4 XBRL
Form AOC-4 XBRL should be filed within 30 days from the Annual General Meeting.
Filing the financial statement within the due date is very crucial. Companies that follow all the compliances within the time are not only benefited internally but are also perceived in a good way by the government and the public at large. TAXAJ with its professional team will assist you during the whole process. TAXAJ is a complete XBRL solution that not only generates XBRL Instance documents as per MCA Taxonomy but also fetches most of the information-related credentials automatically. The Team at TAXAJ has error locator facility which not only results in the smooth flow of work but also ensures filing is done in a time-bound manner.
Following steps need to be followed for successful XBRL filing:
Following steps need to be followed for successful XBRL filing:
Step 1: Begin with the company’s financial statements.
Step 2: Map Company’s every financial Element to a corresponding element in published taxonomy.
Step 3: Create the instance document- It involves tagging the XBRL taxonomy elements with various accounting heads in the books of accounts of the company
Step 4: Review and Verify the instance document- Once the document is prepared it has to be verified that all the information has been correctly captured and is a valid instance document.
Step 5: Download XBRL validation tool from MCA Portal
Step 6: Use the tool to validate the instance document- The validation shall be done as per the latest and correct version of taxonomy prescribed by MCA
Step 7: Perform Pre- Scrutiny of the validated instance document through the tool- A working internet connection is mandatory to perform this step.
Step 8: Attach the instance document to Form AOC-04 XBRL - Separate instance documents need to be attached with respect to Standalone Financial statements and consolidated financial statements
Step 9: Uploading Form AOC-04 XBRL on the MCA Portal.
Additional fee of late Filing XBRL Report
Additional fee of late Filing XBRL Report
In case of Delay in filing the annual returns/balance sheet/financial statement beyond the period provided under Section 137(1) of the Act – Due dates to file AOC-4 XBRL (within thirty days of the date of the annual general meeting) Rupees 100/- per day would be the late fees.
Penalty for not filing the Form AOC-4 XBRL at All
Penalty for not filing the Form AOC-4 XBRL at All
If a company does not file AOC-4 XBRL along with a copy of the financial statements before the due date, the company will be punishable with a fine of one thousand rupees for every day during which the failure continues up to a maximum amount of Rs.10 lakhs.
Further, the Managing Director, Directors and the Chief Financial Officer of the company, could be punished with imprisonment for a term which may extend to six months or with fine which will not be less than Rs.1 and up to Rs.5 lakhs.
